Guide
How much life insurance do you need?
A tool plus explanation of the method: the years of income replacement, major debts, education funding, and assets you currently hold.
The standard method involves totaling what your income would have provided for and subtracting existing resources. This approach does not require exact precision, and it should not: term policies come in rounded amounts, and the objective is a number that maintains household stability during the critical years.
Coverage estimate
Formula = income × years + debts + education costs − existing resources, rounded to $5,000 increments. This is a beginning framework, not personalized guidance.
Why those inputs
Income replacement years. Most insurance professionals recommend replacing ten to twenty years of income, depending on how long dependents will require financial support. A household with young children in Yorba Linda often leans toward the higher end because costs for school, childcare, and housing cluster during the same period.
Debts and obligations. Mortgages are typically the biggest debt. Coverage sufficient to pay off a mortgage gives survivors the freedom to make their own choice about the family home without being forced by financial pressure.
Education costs. A reasonable amount per child in current dollars. Incorporating education expenses into your initial purchase is more efficient than applying for additional coverage afterward.
What you already own. Accessible savings and workplace group insurance. Workplace coverage typically terminates with employment, so most individuals include only a percentage of it in their calculations.
Once you settle on a figure, the quote tool displays what each carrier charges for that amount over periods of 10, 15, 20, 25 or 30 years. Many people choose to buy above their calculated estimate because the added monthly cost is modest when you are younger.